New World Development sets HK$27b sales target

New World Development (0017) has set a sales target of HK$27 billion for the 2026 fiscal year, prioritizing sales to accelerate cash flow.

Chief executive Huang Shao-mei said that the group will continue its three core strategies: focusing on its core business, active financial management, and enhancing operational efficiency. 

The developer aims to capitalize on falling interest rates and an improving property market to boost sales and speed up cash collection. She confirmed that the group met its previous full-year target of HK$26 billion.

Huang also outlined plans to unlock the value of the group's agricultural land holdings. The Northern Metropolis development is a key focus, with the joint venture project with China Merchants Shekou Industrial Zone on Fanling Ma Sik Road already commencing construction in March. 

This project will provide about 2,300 residential units, with sales expected to start as early as 2027. Meanwhile, the first phase of the Yuen Long South project with China Resources Land (1109) has completed land premium payments and is estimated to start construction within the year.

The company's office leasing portfolio remains strong, and efforts will be made to increase rental income. 

To preserve cash, shareholder and perpetual bond dividends have been suspended. Management expenses will be strictly controlled, with capital expenditure for the current fiscal year capped below HK$12 billion. 

The recent completion of approximately HK$88.2 billion in loan refinancing provides more flexibility for future business development and finances.

Huang emphasized that the group remains committed to diligently navigating challenges ahead.